Chih-Hsin Chen; The plan for 2013

SAIC passenger cars Dual-brand strategy fermentation, breaking the £10,000 car price curse

In the automotive industry, 100,000 yuan has virtually become a "watershed" in own brands and joint venture brands, more than 100,000 yuan also become a curse lingering in the head of the independent brand cars. However, this spell is completely broken.

According to the latest statistics show that Shanghai Automotive Group Co., Ltd. Passenger Vehicle Company (hereinafter referred to as "SAIC passenger cars) annual sales reached 200,017, a year-on-year growth of 23.5%. 200 thousand annual sales in the industry may be nothing, but the 200,000 behind is the average car sales price of £11.2 thousand, SAIC passenger car sales this year it only took five and a half years. The data from the first car off the assembly line use of the shortest time scale to reach 200,000 Hyundai three years, the two independent brands Geely and Chery with eight and seven years respectively to achieve 200,000 anual sales, GM also spent five years to achieve annual sales of 200,000.


In 2013, the executive vice president of SAIC, General Manager of Passenger Vehicle Company Chih-Hsin Chen revealed SAIC passenger car sales target to increase by 20% to 240,000 at the same time, to achieve a qualitative breakthrough, further improve car priced at 150,000 yuan or more the ratio of products. Even set himself the goal of a profit of 50 million yuan.

The compound annual growth rate of 59.3%

Three times its own brand

Compared with the first-line joint venture sales, Chih-Hsin Chen said, 200,000 Perhaps nothing; SAIC brands, 200,000 enterprises to achieve economies of scale, it can be said to be a milestone in the process of growing up.

According to statistics, from the market in 2007 to 2012, SAIC passenger cars in just five and a half years, the compound annual growth rate of 59.3%, much higher than the overall passenger car market growth rate of 21.2%, 19.1% own brand compound growth rate of more than three times.

Leaving Chih-Hsin Chen valued sales behind SAIC passenger cars average car sales price of £11.2 thousand, this also means that SAIC passenger cars to mainstream competitive range among the joint venture brands more than 100,000; behind SAIC passenger cars 700,000 cumulative sales of SAIC passenger cars of the user is no longer the mice; behind Roewe / MG brand awareness, brand premium on the ability to have different levels of enhancement.

Research shows that from a third party, the Roewe brand awareness has been raised in 2011, to 93.4%, MG also rapidly increased to 84.4%. From brand familiarity of view, the Roewe brand in 2011 reached 65.3%, MG reached 50.7%. (The former is the prompt recognition, the latter is unprompted awareness.)

With respect to almost all of its own brand, the dual-brand already has more than 5% of the premium brand, even compared with some joint venture brands, two brands have begun to have a brand premium of about 3%. Dual brand has entered the brand familiarity and reputation of the incubation period.

This is quite pleased to let senior SAIC passenger cars represented by Chih-Hsin Chen. Chih-Hsin Chen said SAIC passenger cars basically choose the same supplier system, technical standards and quality requirements of its joint venture with SAIC comparable. However, due to the differences, the same quality on the brand's reputation and bargaining power, new energy similar to the product of the joint venture by the recognition, and will be able to sell at high prices. Own brand products, regardless of the technology, or parts of a high standard high demand, but will not lead to a high price.

Pushing differentiated Dual-brand strategy basic layout completed

As the saying goes, the strategic decision path selection. Backed by SAIC this tree, Chih-Hsin Chen, SAIC passenger cars from the beginning on the choice of a starting point, international, leapfrog "development strategy, and unlike most independent brand from the low-end cut.

However, this severe SAIC passenger car brand premium force. To this end, research and development, SAIC passenger cars insisted that the world's resources for our own use. SAIC passenger cars has developed a comprehensive program of research and development. A0-class MG3, completely independently developed by the British and the Shanghai Technology Center; With a comprehensive listing of the second-generation products, 350, MG6 Platform A new A framework replaced by SAIC and technology center in the United Kingdom and South Korea tripartite cooperation. The B level Roewe 950 is generic continuation cooperation.

According to reports, the SAIC passenger car research and development center in the United Kingdom designers every quarter have the ten days Dunshou in the Chinese market. In addition, a total investment of 44 billion technology center will be fully completed in 2013, the SAIC in technology will further expand the scale of investment. According to the plan, but also around the passenger car technology center full engagement, the scale of investment will be more than 20 billion. '

In marketing, said Jiang Jun, deputy general manager of SAIC passenger cars, 2012, SAIC passenger car sales 200,000 Roewe, MG brands cumulative sales were 127,527 and 72,490, a year-on-year growth rate of 11.9% and 51%, both record highs. This also shows that SAIC passenger cars dual brand strategy layout is basically completed, innovation and differentiation will become the core of the marketing work.

Jiang Jun, revealed that SAIC passenger car vehicles and the country's first voice interactive technology iVoka on the basis of the human-machine voice interaction, to add real-time traffic adjustments, the system personalized service response speed, to ensure that the quality of service at the same time, in order to consumers solve road congestion driving environment, signs that the the SAIC brand has fully occupy the forefront of the future car change more than 50% of the installed capacity rate, breakthrough industry level.

Roewe will gradually dilute the British style, more popular. In fact, this is reflected from the Roewe W5 Roewe 950 is particularly obvious, as the MG brand with nearly a hundred years of historical accumulation will be unequivocally the British style, in the end, the personalized car also more British demeanour.

The face of a large wave in the service business from luxury cars to independent brands have, Jiang Jun, revealed that since August 2011, as the new standard of the domestic automotive aftermarket, SAIC passenger car brand launched innovative products "house Jie repair" , respectively, in March 2012 and August were two significant upgrade, the service was expanded to 80, the effort to build a "network home" service platform. Launched more than a year, the "door-to-door service has accumulated service 3,000, the satisfaction rate of nearly 100%.

New Roewe 550

The 2013 SAIC passenger car heavy new car

Jiang Jun, revealed that the the SAIC brand will be full-blown in 2014. Heavy vehicle is the new facelift of the new Roewe 550, the car after interior and a number of upgrades, will be equipped with DCT technology, which will be the first with DCT products in the domestic own-brand products.

A-class car market, SAIC's core market will also launch two more competitive models: MG5 1.5T Roewe 350 1.5T models. In addition, the compact SUV is also about to enter the listed sequence.

SAIC passenger car strategy will become a breakthrough in the main A-class car market, new energy. SAIC passenger cars to insiders, engage in formalism, with pure electric vehicles E50 officially listed in the new energy vehicles, SAIC really dry to really achieve the industrialization of new energy vehicles. According to reports, the SAIC has invested 6 billion yuan to build a new energy industry chain. Basis SAIC plans to "12th Five-Year" period, the production and sales of all models of the SAIC new energy vehicles to account for 20 percent. SAIC new energy vehicles E50 this year over 1000 goals.

Jiang Jun, the shaping of the high-end brand is a long process, in this process, the most important is to "adhere to the". Car prices stabilized at 110,000, the next step, SAIC passenger cars will continue to provide high-end, very close, and strive to stand firm the 150,000 more competitive price Heights.

patpending wrote:When we read translated "technology center in the United Kingdom and South Korea tripartite cooperation. " it looks as though three actual places (with China) are in discussion - though I forget what "drivetrain" can mistranslate as. So is there an R&D facility in Korea? I thought SAIC had withdrawn from Ssangyong.

Given comments from people in the UK about pricing, I note that being able to charge more is important.

Does that mention the launch of a new 1.5 turbo in the MG3? I would guess who would get it.